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In Samadi v. MBNA America Bank, N.A., 178 Fed.Appx. 863 (11th Cir. Apr. 21, 2006), cert. denied, 2006 WL 2078944 (U.S. Oct. 30, 2006), MBNA filed an arbitration claim against Samadi for failure to pay a credit card debt. Samadi argued that his arbitration agreement with MBNA was not binding because he never received notice of the amendment to his cardholder agreement.
MBNA submitted an affidavit stating that it “had mailed notice of the amendment to the address where the plaintiff's statements were sent on or about December 20, 1999, and MBNA's files contained no information that the plaintiff opted out of the arbitration provision.” Based upon MBNA’s affidavit, the district court dismissed Samadi’s complaint and granted MBNA’s motion to compel arbitration. Samadi appealed.
The Court of Appeals noted that the FAA requires arbitration agreements to be in writing, but does not require them to be signed by the parties.
The arbitration provision in MBNA’s cardholder agreement contained a Delaware choice-of-law provision. Under Delaware law, a bank may at any time amend a revolving credit plan agreement in any respect, including adding an arbitration agreement. Del. Code. Ann. Tit. 5, §952(a). The statute also permits notice of an amendment to be included in the same envelope with a periodic statement, as part of the periodic statement or in other materials sent to a borrower.
Samadi argued he never received notice of the amendment but provided nothing more than his assertion he never received the mailing. A Delaware court had previously held that the same arbitration clause, sent in the same manner, was enforceable. Edelist v. MBNA American Bank, 790 A.2d1249 (Del. Super. Ct. 2001). The Court held that MBNA’s affidavit was sufficient to show that it had mailed notice of the amendment to the address where Samadi’s statements were sent and that Samadi had failed to opt out of the arbitration provision.
Thus, the Court of Appeals concluded the district court did not abuse its discretion by relying on the affidavit to dismiss Samadi’s complaint and compel arbitration.
Samadi appealed the decision to the United States Supreme Court, which denied his petition for certiorari on October 30.
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